GBP/USD rejected from above 1.2500

Cable climbed to 1.2505, reaching a 3-day high but quickly pulled back. It was rejected from above 1.2500 and currently is trading at 1.2485 as the US dollar attempts to recover momentum in the market, ahead of the meeting between Donald Tump and Xi Jinping and tomorrow’s NFP report. 

From the level it closed yesterday is unchanged and compared to last week close, is lower by less than 50 pips. Today’s recovery was capped by the 1.2500 zone and also by a downtrend line from last week highs. 

Technical outlook 

The GBP/USD pair continues to move in the sideways, in a range between 1.2430 and 1.2500. A consolidation above 1.2500 could give support to the pound to rally further, probably to test weekly highs that lie at 1.2550/60. 

On the downside, a break below 1.2430, would expose the 1.2400 zone that capped the decline last week. A significant close under 1.2400 could lead to an extension of the USD rally.